The Center held the first round of the Critical and Strategic Minerals Auction on Wednesday in an effort to address any shortcomings in the supply chain for resources such as lithium, cobalt, and titanium. Union Minister of Mines Pralhad Joshi stated that 20 blocks have been put up for auction, with a combined estimated value of ₹ 45,000 crore. “We have identified a total of 100 blocks for auction. Of these, 20 are being offered in the first tranche and the auction for the others will take place in due course,” Mr. Joshi stated.

Sixteen of the twenty blocks—located in Uttar Pradesh, Gujarat, Jharkhand, Bihar, Odisha, Tamil Nadu, Chattisgarh, and Jammu and Kashmir—will receive composite licences, with the remaining four receiving mining licences. Composite licences permit exploration.

The highest percentage of royalty rates that the bidder quotes will be used to determine who wins the contract. The actual sale of the tender papers will start on Wednesday, and Mr. Joshi urged potential bidders to submit their applications.

A total of 24 minerals were designated as Critical and Strategic minerals following an amendment to the Mines and Minerals (Development and Regulation) Act in August.

The minerals are vital to both the nation’s economic growth and security, which makes the sale significant.

The 2030 goal of India

Lithium and other minerals would be vital in ensuring that India meets its 2030 goal of obtaining 50% of its installed capacity for electricity from non-fossil sources. Lithium is a fundamental element in lithium-ion batteries, which constitute the foundation of both electric vehicles—hailed as the transportation of the future—and mobile communication. The widespread adoption of solar power will also depend on batteries, which are used to store electricity generated by the Sun for use during cloudy conditions.

Cobalt finds value in storage as well, and titanium finds extensive employment in the defense sector.

According to officials, supply chain vulnerabilities may result from the scarcity of certain minerals or from the concentration of their extraction or processing in a small number of countries. Additionally, lithium, graphite, cobalt, titanium, and other rare earth elements will be necessary for future technology.

Pharmaceutics and agriculture are two additional important businesses that rely on these minerals.

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